Mr. Alberto Morales reports

ANDEAN PRECIOUS METALS REPORTS Q3 2023 RESULTS

Andean Precious Metals Corp. has released its operating highlights and unaudited condensed interim financial results for the three and nine months ended Sept. 30, 2023. All amounts are expressed in U.S. dollars unless otherwise noted. This news release should be read together with Andean's management's discussion and analysis and condensed interim consolidated financial statements for the three and nine months ended Sept. 30, 2023, which are available under the company's profile on SEDAR+.

"This has been a transformative period for Andean. In September, we announced our exclusive agreement with Silver Elephant to purchase up to 800,000 tonnes of oxide material from its Paca silver project," stated Alberto Morales, Andean's executive chairman and chief executive officer.

Mr. Morales added: "Earlier this week, we shared the exciting news of our acquisition of Golden Queen Mining LLC, which operates Soledad Mountain mine, strengthening our position as a larger, more robust and better diversified precious metals producer while maintaining our strong liquid asset position. From the outset of 2023, we've been clear about our objectives: extend the life of our Bolivian operations and grow our company through acquisitions in the Americas. We have now achieved both objectives."

As part of Andean's strategy to grow while improving margins and cash flow, the company is making strategic adjustments to optimize production in Bolivia and at Soledad Mountain in California. In January, 2024, Andean will release an updated National Instrument 43-101 reserve and resource estimate for Soledad Mountain. This will be followed by a new mine plan and changes in the ore control process, as well as production and cost improvements. Meanwhile, at San Bartolome, the transition from a conventional mining operation is near complete, with the majority of ounces produced arising from third party feedstock. By mid-2024, Andean anticipates that production from the fines disposal facility (FDF), together with third party oxide material, will replace the low-grade and high-cost tonnage from Pallacos.

Third quarter 2023 highlights:

• The company produced approximately 1.2 million silver equivalent ounces, an increase of 2 per cent compared with second quarter 2023. The average head grade and recoveries were 128 grams per tonne silver and 76 per cent compared with 119 g/t Ag and 79 per cent in Q2 2023. Based on 3.5 million ounces of silver equivalent production to date and expected production for the rest of the year, the company is decreasing its 2023 silver equivalent production guidance range to between 4.6 million and 4.8 million ounces.
• Total revenue was $38.2-million, based on sales of 1.6 million silver equivalent ounces at an average realized price of $24.34 per ounce, compared with Q2 2023 total revenue of $15.3-million from the sales of 600,000 AgEq oz at an average realized price of $24.65 per ounce. The total revenue increase of 150 per cent, or $22.9-million, is due to the inclusion of 540,000 AgEq oz classified as inventory as at the end of Q2 2023, as well as an increase in production.
• As of Sept. 30, 2023, delayed sales of approximately 233,000 AgEq oz were valued at $4.6-million and classified as inventory. Subsequent to Sept. 30, 2023, the bullion was sold for a total of $5.4-million based on an average realized silver price of $23.46 per ounce.
• In Q3 2023, cost of sales was $30.9-million, an increase of 162 per cent, when compared with Q2 2023, mainly due to the recognition of costs associated with 540,000 AgEq oz classified as inventory in Q2 2023 and sold in Q3 2023.
• General and administrative expenses of $2.7-million were $400,000 lower than Q2 2023 and an $800,000 improvement over Q3 2022. The decrease over Q2 2023 was largely due to lower share-based compensation expenses and management fees.
• For Q3 2023 and Q2 2023, reported income from mine operations was $6.3-million and $2.4-million, respectively. In Q3 2023, the company reported net income of $100,000 compared with net income of $200,000 in Q2 2023.
• Earnings before interest, taxes, depreciation and amortization and adjusted earnings before interest, taxes, depreciation and amortization improved to $4.3-million and $6.8-million, respectively, compared with $3.7-million and $4.9-million in Q2 2023. The increase over Q2 2023 was largely due to higher revenues, lower exploration and evaluation costs, and general and administration costs, partially offset by higher operating expenses.
• Operating cash costs per ounce of silver produced, net of byproduct credits, were $19.39, an increase of 1 per cent over Q2 2023, primarily due to higher oxide material purchasing costs.
• All-in sustaining costs per silver ounce sold, net of byproduct credits, were $21.28, a decrease of 10 per cent when compared with Q2 2023. Based on the company's nine-month AISC of $22.60 per ounce sold, it is increasing its AISC guidance for 2023 to between $22.50 and $22.90 per silver ounce sold.
• Positive net working capital of $86.1-million as of Sept. 30, 2023, including liquid assets of $88.1-million. Liquid assets were composed of $76.8-million in cash, silver bullion of $6.3-million, marketable securities of $4.3-million and value-added tax certificates receivable of $1.5-million. Liquid assets were $91.8-million as at Dec. 31, 2022.
• Pursuant to its normal course issuer bid, in Q3 2023, the company repurchased and cancelled 780,500 shares at an average purchase price of 74 Canadian cents per share for a total of $400,000 ($600,000 (U.S.)). Since the inception of the NCIB in the fall of 2022, a total of 3.16 million shares at an average purchase price of 79 Canadian cents have been repurchased and cancelled for a total of $1.9-million ($2.5-million (Canadian)).
• Civil construction and procurement of the equipment required for the silver recovery project at the company's FDF are progressing as scheduled. Delivery of the equipment has commenced and is in progress. Commissioning and commencement of production are targeted for the first half of 2024.
• The company signed an exclusive five-year agreement to purchase up to 800,000 tonnes of oxide material from the Paca silver project in Bolivia. Paca is an undeveloped, epithermal silver and base metal deposit in Bolivia located fewer than 200 kilometres southwest of Andean's San Bartolome mine and processing facilities near Potosi.

Environment, social and governance summary performance

Health and safety:

• Lost-time-injury frequency rate was zero during Q3 2023, and the company achieved a significant safety milestone of approximately 514 days with no lost-time injuries. One of the company's goals is to maintain a safe and healthy working environment for all, with a strong safety culture, where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free.
• The company is committed to have all employees and contractors return home safely every day. Regular safety awareness campaigns are conducted through external training consultants for all personnel.

Environment:

• Water management and tailings dams management: In Q3 2023, water consumption at San Bartolome was 51 per cent compared with 53 per cent in Q2 2023. The reduction in water consumption was achieved by reusing 100 per cent of water from the tailings dam, 47 per cent water from the waste water treatment plant or rainwater collection, and 2 per cent freshwater for office and food services. Monthly external monitoring was conducted on water and sediment for surrounding lagoons. Piezometers and environmental wells are externally and internally monitored as part of the company's water management.
• Climate action: Manquiri carries out the inventory of its greenhouse gas emissions for scopes 1, 2 and 3. For scopes 1 and 2, objectives are in place with a goal to be carbon neutral. Emission monitoring in the refinery and waste incinerator is conducted monthly to ensure clean air.
• Environmental incident rate: The reportable environmental incident rate remained at zero in the third quarter and year to date.

Community

Year to date, donations, medical support and infrastructure investments were provided to local communities, including:

• Eleven new homes were delivered to the Chalviri Baja and Phusuta communities to provide housing for families in dire need of accommodation.
• Teachers and students of the Chalviri educational unit continued to receive training through workshops and seminars.
• The company participated in several community development initiatives, including providing water purification materials for the Escuela Robertito community and 118 children, who live and receive education on the slopes of Cerro Rico.

2023 outlook update and guidance

In 1987, the City of Potosi, including the Cerro Rico Mountain, was declared a World Heritage site by UNESCO. Twenty-seven years later, in 2014, the Ministry of Mining and Metallurgy of Bolivia issued the Ministerial Resolution, which regulates all mining operations on the Cerro Rico Mountain.

The company agrees that protecting the Cerro Rico Mountain and the City of Potosi while preserving the livelihoods of local mining co-operatives is very important.

In 2017, at the request of the Ministry of Mining and Metallurgy and the Departmental Federation of Mineral Co-operatives, Comibol defined new areas for the future relocation of miners working at an elevation of more than 4,400 metres. In response, Manquiri shifted its mining operations from above 4,400 metres to focus on mining its Pallacos located below 4,400 metres. Only partial progress has been achieved, relocating mining co-operatives and privately held mining companies.

As the company has accelerated the transition from mining its nearly depleted high-cost Pallacos to processing its lower-cost FDF material, the company has agreed to negotiate with Comibol a reduction of the Pallacos in exchange for new oxide deposits. As part of the negotiation, during Q3 2023, Comibol requested the company provisionally suspend mining of its low-grade Pallacos until a final resolution is issued. The company anticipates a resolution with Comibol shortly.

To bridge the gap between now and the anticipated commencement of the FDF production in first half 2024, the company intends to increase the purchase of third party oxides and processing of material from the recently signed contracts for the Alta Vista and Paca deposits. To date in 2023, silver equivalent ounces produced from third parties represent more than 78 per cent of total ounces produced in Q3 2023 and 69 per cent for the nine months ended Sept. 30, 2023.

Following the completion of the FDF project by mid-2024, management is anticipating that production from the FDF and third party oxide material will replace low-grade and high-cost tonnage from Pallacos.

Based on the first nine months of production at its Bolivian operations and the government restrictions on mining activities at Pallacos, the company is decreasing its 2023 silver equivalent production guidance range to between 4.6 million and 4.8 million ounces.

Based on: (i) the hardness of third party purchased oxide material; (ii) the increase in third party purchases; and (iii) an increase in the cost of consumables, the company is increasing its AISC guidance for its Bolivian operations by approximately 4 per cent (based on the top end of revised AISC guidance provided in the Q2 2023 management's discussion and analysis) to a range of $22.50 to $22.90 per silver ounce sold.

Its attached guidance for Bolivian operations table sets out Andean's year-to-date results for its Bolivian operations against its original full-year 2023 guidance and its revised 2023 guidance.

Q3 2023 webcast

Management will host a webcast tomorrow morning to discuss the company's Q3 2023 financial and operating results. A question-and-answer session will follow management's prepared remarks. Details of the webcast are as follows.

Date and time:  Thursday, Nov. 30, 2023, at 9 a.m. ET/6 a.m. PT

Conference call:  Canada/United States toll-free: 1-800-319-4610; Toronto toll: 1-416-915-3239 and international toll: 1-604-638-5340

Webcast:  A live audio webcast of the earnings call will be available.

Notes:  To listen to the live webcast, please connect at least 15 minutes prior to the start time to ensure adequate time for any software download that may be required to join the webcast.

Replay:  An archived replay of the webcast will be available for 90 days and on Andean's website.

Qualified person statement

The scientific and technical content disclosed in this press release was reviewed and approved by Donald J. Birak, independent consulting geologist to the company, a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects), registered member, Society for Mining, Metallurgy and Exploration (SME), fellow, Australasian Institute of Mining and Metallurgy. Mr. Birak has visited Manquiri's various sites frequently, most recently in September, 2023.

About Andean Precious Metals Corp.

Andean is a growing precious metal producer focused on top-tier jurisdictions in the Americas. The company owns and operates the San Bartolome project in Potosi, Bolivia, and the Soledad Mountain mine in Kern county, California, and is well financed to act on future growth opportunities. Andean's leadership team is committed to creating value, fostering safe, sustainable and responsible operations, and achieving its ambition to be a multiasset, mid-tier precious metal producer.

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